EU to launch second Innovation Fund call for large-scale projects

The European Union is planning to launch the second Innovation Fund call for large-scale projects on 26 October, with financing of up to €1.5bn set to be available.

Unlike the first round, the application and selection process will have only one stage. Otherwise, the methodology for assessing projects will remain largely similar to the first call, the EU said. However, call documents have been improved to make the process clearer for applicants.

Launched last year, the Innovation Fund will provide an estimated €20bn for commercial demonstration of innovative low-carbon technologies over the decade to 2030. Funding levels will depend on the carbon price and the EU Emissions Trading System (ETS) whose revenues finance the Innovation Fund.

The initiative – which is also funding smaller projects - aims to help bring to the market industrial solutions to decarbonise Europe and support the transition to net zero. Investing in clean energy and industry will boost economic growth, create local future-proof jobs and reinforce European technological leadership on a global scale, the EU said.

Fourteen CCS projects responded to the initial large-scale call, at least two of which – Fortum Oslo Varme and Stockholm Exergi (see our earlier story) – progressed to June’s second and final round. Results are due before the end of the year.  

The EU said the second call would accept both resubmissions and new applications. The deadline for bids is likely to be in March 2022 with a view to awards being granted in the fourth quarter.